IHOP Q1 Results Disappoint

IHOP released financial results for the Q1 of 2007 ended March 31, 2007, which included the following performance highlights:

• The Company successfully completed a $200 million securitized financing transaction during the first quarter 2007.

• EPS for the first quarter 2007 was $0.63, which decreased 7.4% due to costs related to the write-off of deferred financing costs and a pre- payment penalty on the Company's pre-existing debt. Excluding these costs, EPS would have increased 2.9% to $0.70.

• IHOP produced its 17th consecutive quarter of same-store sales growth with an increase of 0.5% for the first quarter 2007. This growth was driven by higher guest check averages, which offset declines in guest traffic during the quarter.

• IHOP franchisees developed and opened eight new restaurants during the first quarter 2007. System-wide restaurants grew 4.3% year-over-year for a total of 1,306 IHOPs.

• Cash Flow from Operating Activities for the first three months of 2007 totaled $14.6 million. Additionally, $3.9 million of cash was provided by the collection of the Company's long-term receivables for the first three months of 2007.

• Share repurchases for the first quarter 2007 amounted to $37.6 million worth of IHOP stock, or approximately 659,400 shares.